36024 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Notices

Jim vonHerrmann, Cycla Corporation

(consultant)

Andrew McClymont, Cycla Corporation

(consultant)

Persons/Agencies Receiving Briefings/Project

Prospectus/Requests for Comment

Regional Response Team (RRT), Region 5,

representing the Environmental Protection

Agency; the Coast Guard; the U.S.

Departments of Interior, Commerce, Justice,

Transportation, Agriculture, Defense, State,

Energy, Labor; Health and Human Services;

the Nuclear Regulatory Commission; the

General Services Administration; and the

Federal Emergency Management Agency

(RRT Co-Chairs: Richard Karl, EPA and

Captain Gregory Cope, Coast Guard).

I. Conclusion

Based on the above-described analysis of

the proposed demonstration project, OPS has

determined that there are no significant

impacts associated with this action.

[FR Doc. 98–17492 Filed 6–30–98; 8:45 am]

BILLING CODE 4910–60–P

DEPARTMENT OF TRANSPORTATION

Research and Special Programs

Administration (RSPA), DOT.

[Docket No. RSPA–98–3892; Notice 13]

Pipeline Safety: Intent To Approve

Project and Environmental

Assessment for the Phillips Pipe Line

Company Pipeline Risk Management

Demonstration Program

AGENCY: Office of Pipeline Safety, DOT.

ACTION: Notice of Intent to Approve

Project and Environmental Assessment.

SUMMARY: As part of its Congressional

mandate to conduct a Risk Management

Demonstration Program, the Office of

Pipeline Safety (OPS) has been

authorized to conduct demonstration

projects with pipeline operators to

determine how risk management might

be used to complement and improve the

existing Federal pipeline safety

regulatory process. This is a notice that

OPS intends to approve Phillips Pipe

Line Company (Phillips) as a participant

in the Pipeline Risk Management

Demonstration Program. This also

provides an environmental assessment

of Phillips’s demonstration project.

Based on this environmental

assessment, OPS has preliminarily

concluded that this proposed project

will not have significant environmental

impacts.

This notice explains OPS’s rationale

for approving this project, and

summarizes the demonstration project

provisions (including affected locations,

risk control and monitoring activities,

and regulatory exemptions) that would

go into effect once OPS issues an order

approving Phillips as a Demonstration

Program participant. OPS seeks public

comment on the proposed

demonstration project so that it may

consider and address these comments

before approving the project. The

Phillips demonstration project is one of

several projects OPS plans to approve

and monitor in assessing risk

management as a component of the

Federal pipeline safety regulatory

program.

ADDRESSES: OPS requests that

comments to this notice or about this

environmental assessment be submitted

on or before July 31, 1998 so they can

be considered before project approval.

However, comments on this or any other

demonstration project will be accepted

in the Docket throughout the four year

demonstration period. Comments

should be sent to the Dockets Facility,

U.S. Department of Transportation,

Plaza 401, 400 Seventh Street, SW,

Washington, DC 20590–0001, or you can

E-Mail your comments to

ops.comments@rspa.dot.gov. Comments

should identify the docket number

RSPA–98–3892. Persons should submit

the original comment document and one

(1) copy. Persons wishing to receive

confirmation of receipt of their

comments must include a self-addressed

stamped postcard. The Dockets Facility

is located on the plaza level of the

Nassif Building in Room 401, 400

Seventh Street, SW, Washington, DC.

The Dockets Facility is open from 10:00

a.m. to 5:00 p.m., Monday through

Friday, except on Federal holidays.

FOR FURTHER INFORMATION CONTACT:

Elizabeth Callsen, OPS, (202) 366–4572,

regarding the subject matter of this

notice. Contact the Dockets Unit, (202)

366–5046, for docket material.

SUPPLEMENTARY INFORMATION:

1. Background

The Office of Pipeline Safety (OPS) is

the federal regulatory body overseeing

pipeline safety. As a critical component

of its federal mandate, OPS administers

and enforces a broad range of

regulations governing safety and

environmental protection of pipelines.

These regulations have contributed to a

good pipeline industry safety record by

assuring that risks associated with

pipeline design, construction,

operations, and maintenance are

understood, managed, and reduced.

Preserving and improving this safety

record is OPS’s top priority. On the

basis of extensive research, and the

experience of both government and

industry, OPS believes that a risk

management approach, properly

implemented and monitored, offers

opportunities to achieve:

(1) Superior safety, environmental

protection, and service reliability;

(2) Increased efficiency and reliability

of pipeline operations; and

(3) Improved communication and

dialogue among industry, the

government, and other stakeholders.

A key benefit of this approach is the

opportunity for greater levels of public

participation.

As authorized by Congress, OPS is

conducting a structured Demonstration

Program to evaluate the use of a

comprehensive risk management

approach in the operations and

regulation of interstate pipeline

facilities. This evaluation will be

performed under strictly controlled

conditions through a set of

Demonstration Projects to be conducted

with interstate pipeline operators. A

Presidential Directive to the Secretary of

Transportation (October 16, 1996) stated

that in implementing the Pipeline Risk

Management Demonstration Program:

‘‘The Secretary shall require each

project to achieve superior levels of

public safety and environmental

protection when compared with

regulatory requirements that otherwise

would apply.’’ Thus, the process to

select operators for this Demonstration

Program involves a comprehensive

review to ensure that the proposed

project will provide the superior safety

and environmental protection required

by this Directive. OPS may exempt a

participating operator from particular

regulations if the operator needs such

flexibility in implementing a

comprehensive risk management

program; however, regulatory

exemption is neither a goal nor

requirement of the Demonstration

Program. This document summarizes

the key points of this review for

Phillips’s demonstration project, and

evaluates the safety and environmental

impacts of this proposed project.

2. OPS Evaluation of Phillips’s

Demonstration Project Proposal

Using the consultative process

described in Appendix A of the

Requests for Application for the

Pipeline Risk Management

Demonstration Program (62 FR 14719),

published on March 27, 1997, OPS has

reached agreement with Phillips Pipe

Line Company on the provisions for a

demonstration project to be conducted

along Phillips’s Sweeny-Pasadena

system in Texas.

Company History and Record

Phillips Pipe Line Company is

headquartered in Bartlesville,
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Notices 36025

Oklahoma, and employs over 580

people and operates and maintains

approximately 7500 miles of pipelines

in 9 states. Phillips transports

approximately 750,000 barrels of crude

oil, refined products, petrochemicals,

and natural gas liquids each day.

Before entering into consultations

with Phillips, OPS determined that

Phillips was a good demonstration

program candidate based on an

examination of the company’s safety

and environmental compliance record,

its accident history and its commitment

to working with OPS to develop a

project meeting the Demonstration

Project goals.

In December 1992, during an

excavation project, a contract equipment

operator punctured a pipeline operated

by Phillips in Aurora, Colorado. This

accident resulted in a release of 1,665

barrels of natural gas liquids, injuring

six people. Because of concerns raised

by OPS over company procedures,

Phillips developed a risk based

approach to improve the safety of

pipeline excavations and implemented

an Excavation Risk Assessment process.

Lessons learned from this incident as

well as other company and industry

incidents led Phillips to the

development and implementation of a

formal risk management program. This

event was also a major driver behind the

development of the Phillips Excavation

Risk Assessment Process which is a

focal point of its proposed

demonstration project.

Consultative Evaluation

During the consultations,

representatives from OPS headquarters

and Southwest Region, pipeline safety

officials from Texas, and risk

management experts met with Phillips

to discuss Phillips’s overall risk

management process. This included

discussion of Phillips’s risk assessment,

risk analyses, and risk control processes

and tools, its performance measures,

and the philosophy and administration

of risk management within the

company. This also included a

discussion of Phillips’s excavation risk

assessment process, including a review

of the proposed demonstration project

activities; population, terrain, and

infrastructure along the affected

pipelines; communications with outside

stakeholders; and monitoring and

auditing of results once the

demonstration project is underway. The

consultation process also included an

environmental assessment which is an

Appendix to this notice.

The consultation process focused on

three major review criteria:

1. Whether Phillips’s proposed risk

management demonstration project is

consistent with the Risk Management

Program Standard and compatible with

the Guiding Principles set forth in that

Standard;

2. Whether Phillips’s proposed risk

management demonstration project is

expected to produce superior safety,

environmental protection, and

reliability of service;

3. Whether Phillips’s proposed risk

management demonstration project

includes a company work plan and a

performance monitoring plan that will

provide adequate assurance that

superior safety, environmental

protection, and service reliability are

being achieved.

Once OPS and Phillips consider and

address comments received on this

notice and environmental assessment,

OPS plans to issue an Order approving

the Phillips demonstration project.

3. Statement of Project Goals

Phillips has been managing risk on its

pipeline systems using a combination of

personnel knowledge and experience, as

well as Phillips and industry-wide

operating data for many years. In 1995,

Phillips Petroleum Company (Phillips’s

corporate parent) created the Process for

Safety and Environmental Excellence

(PSEE) to achieve a more consistent,

formalized approach to ensuring the

safe and environmentally responsible

operation of its facilities. Within the

framework of the PSEE, Phillips has

implemented a formal risk management

program. Formalizing Phillips’s risk

management program has involved

developing more sophisticated tools to

comprehensively identify and evaluate

the most important risks associated with

the design, construction, operation, and

maintenance of Phillips’s pipeline

systems. Phillips is evaluating all of its

pipelines using these tools, to identify

the nature and location of the most

significant risks.

During this demonstration project,

Phillips will share information about its

evolving risk management program with

OPS. This will enable OPS to acquire an

improved understanding of the methods

and techniques the company is using to

manage risk on its system, and obtain

far more information about the

company’s management processes,

pipeline operations, and potential safety

and environmental risks than is

normally observed during OPS

inspections to ensure compliance with

the regulations.

A key element of Phillips’s risk

management program is a risk-based

approach to managing the risks

associated with pipeline excavations.

The Phillips Excavation Risk

Assessment Process is a formal, ongoing

process that has been in use systemwide since 1993 to identify and control

the unique risks associated with each

excavation on or near Phillips’s

pipelines. The process goes beyond the

existing pipeline safety regulatory

requirements for damage prevention.

For its risk management

demonstration project, Phillips proposes

to comprehensively evaluate the

application and effectiveness of the

Excavation Risk Assessment Process to

all company and third-party excavations

that occur on and across the pipeline

segments included in the project.

Phillips’s demonstration project will

involve:

—requirements that an excavation risk

assessment be conducted prior to each

excavation project (whether the

excavation is performed by Phillips

employees or outside parties

proposing to dig near Phillips’s lines);

—requirements that outside parties

excavating along the Phillips right-ofway prepare work plans and obtain

Phillips’s approval prior to initiating

excavation;

—increased work plan formality, level

of detail, and management approval

required for higher risk excavations,

including where appropriate,

coordination with local emergency

response personnel;

—enhanced monitoring of excavation

work;

—gathering of performance

measurement data and developing a

more quantitative assessment of the

benefits of performing excavation risk

assessments; and,

—enhanced communications with OneCall centers, excavators, and the

public.

Phillips and OPS expect this project

to demonstrate that risk management

techniques can be successfully applied

toward improving pipeline excavation

safety.

4. Demonstration Project Pipeline

Segments

Phillips has proposed a 60-mile

segment of two pipelines for inclusion

in its demonstration project.

Phillips’s Sweeny-Pasadena products

pipeline system consists of two

interstate pipelines, 12′′ and 18′′, that

deliver refined products (e.g., gasolines,

distillates, and naphtha) from Phillips’s

Sweeny Refinery in Sweeny, Texas, to

Phillips’s Pasadena Terminal in

Pasadena Texas. These products have

varying properties and if released under

certain conditions are flammable. They

could also affect human health and the
36026 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Notices

environment if significant exposures

occur.

The 12′′ and 18′′ pipelines have been

in operation since 1959 and 1979,

respectively. This system runs roughly

Northeast from the Sweeny Refinery to

the Pasadena Terminal, passing near the

northern edge of Friendswood, Texas.

The two lines parallel each other over

the entire 60-mile distance. The lines

run through sparsely populated areas for

about the first 45 miles and through

heavily populated areas for the last 15

miles. The lines cross the Brazos and

San Bernard rivers, several major

roadways and railroad lines, and pass

underneath the Texas State Department

of Corrections’ Ramsey facility.

The 12′′ line began service in 1956

and has a maximum operating pressure

(MOP) of 1270 psi. It has had two leaks:

one in 1992 and another in 1993. These

leaks resulted in localized surface

contamination near the line. Phillips

quickly detected the leaks and stopped

the release of product. The

contaminated areas were satisfactorily

remediated. There were no fatalities,

injuries or adverse health effects to any

member of the public or to any Phillips

employees from these events. Both of

these leaks were associated with

material defects that developed because

of the manufacturing process used to

bend sections of the pipe. As a result of

these events, Phillips conducted a

comprehensive review of all pipe bends,

that included an internal inspection for

geometric defects. All piping bends with

characteristics similar to those that had

failed were replaced or heat treated to

eliminate the condition that created the

leaks. The 12′′ line also has some

history of coating problems. To resolve

this problem, Phillips has placed

additional rectifiers to provide

enhanced cathodic protection.

The 18′′ line was placed in service in

1979 and has a MOP of 680 psi. The 18′′

line has not had any leaks.

5. Project Description

In 1995, the Phillips Petroleum

Company (Phillips Corporate) created

the Process for Safety and

Environmental Excellence (PSEE) to

achieve a more consistent, formalized

approach to ensuring safe and

environmentally responsible operation

of its facilities. The PSEE is designed to

manage environmental, safety and

health risks in a manner that is integral

to and not separate from the overall

business process. The Phillips Corporate

PSEE is a comprehensive business

process applicable to every Phillips

Corporate business unit (e.g., Phillips

Pipe Line Company). Within this

framework, each business unit is

required to implement a formal risk

management program.

As part of formalizing its risk

management program for pipelines,

Phillips has identified and uses a

variety of tools to identify and manage

pipeline risks. These include: hazards

analysis, environmental impact reviews,

internal (pipeline) inspection tools,

incident investigations, safety, health

and environmental audits, contractor

assessments, design reviews and others.

To support a more integrated evaluation

of the potential risks represented by its

pipelines, the company also developed

the Phillips Pipeline Risk Assessment

System (PRAS). PRAS is a computerized

indexing model that predicts the

relative risk different pipe segments

represent based on numerous factors

that influence the likelihood and

consequences of pipeline failure. The

model synthesizes data and information

on pipe design, operation, maintenance,

pipe condition, population and activity

near the line, and external

environmental conditions. PRAS has

been in use since 1995 and has been

applied to all of Phillips’s regulated

pipeline systems (approximately 5500

miles of pipe). During the course of the

demonstration project, Phillips will be

enhancing PRAS, and evaluating

improved approaches to integrate the

PRAS results with the output from the

other tools noted previously to

comprehensively and consistently

assess risks across its pipeline.

During this demonstration project,

Phillips will share information about its

evolving risk management program with

OPS.

This will enable OPS to improve its

understanding of the methods and

techniques the company is using to

manage risk on its system, and obtain

far more information about the

company’s management processes,

pipeline operations, and potential safety

and environmental risks than is

normally observed during OPS

regulatory compliance inspections.

The primary focus of Phillips’s

proposed demonstration project is to

reduce pipeline risks resulting from

excavations on or near Phillips’s

pipelines. Phillips hopes to demonstrate

superior risk control and risk reduction

mechanisms by applying its Excavation

Risk Assessment Process. This process

includes specific procedures relative to

pipeline excavations and requires that

an excavation site inspection and risk

assessment be conducted prior to each

excavation project. A risk assessment

matrix is used to assess the potential

risks associated with each excavation

project. This matrix examines various

risk factors for each excavation,

including nearby population density,

the presence of roads and railways, the

existence of other utilities in the

vicinity of the pipeline, the type of

excavation equipment being used, and

the properties of the product in the

pipeline.

Phillips uses a graded approach based

on combinations of risk factors to

evaluate the level of Phillips’s project

review and approvals required for the

excavation plan.

Phillips plans to communicate the

details, progress, and results of the

demonstration project, both externally

and internally. Internally, Phillips will

implement a formal communication

program for company personnel

involved with the demonstration

project. Phillips will also implement

excavation risk assessment refresher

training prior to the start of the project,

that will include the demonstration

project communication plans and

performance measures to be monitored

and tracked during the project.

Externally, Phillips will contact the

affected local emergency planning

committees (LEPCs) at the beginning of

the demonstration project to

communicate the details of the project

and to identify how Phillips will

communicate progress and results

during the project. Phillips will also

contact city and county planning

committees for the towns that the

demonstration segments cross to

communicate Phillips’s excavation

requirements. Phillips will conduct

surveys regarding the effectiveness and

benefits of its excavation risk

management process. Phillips also plans

to seek input from contractors and

developers involved during the

demonstration project to help determine

the cost effectiveness for the level of

safety achieved. They plan to

communicate throughout the project

with OPS, the Texas Railroad

Commission, city and county planning

committees, affected LEPCs, and

contractors and developers.

Phillips’s intended approach to

performance monitoring of the project

will include formal data collection and

performance measures related to

excavations along the demonstration

segments. Phillips has proposed an

initial set of performance metrics for the

project and has an excavation risk

assessment data collection worksheet to

generate data and information relative to

these metrics. Phillips’s proposed

performance metrics include:

• total number of one-call requests

• total number of excavation projects

broken down by

—Phillips’s excavation projects

(planned and unplanned),
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Notices 36027

—third party excavations planned,

and

—other, unplanned excavation

activities.

• initial and final risk ranking of each

excavation that required a formal risk

assessment

• level of approval obtained to complete

the excavation

• number and type of risk control

activities implemented

• number of excavations completed,

changed, or terminated

• categorization and characterization of

the number of excavations by

—successful excavation (i.e., no

damage)

—damage incurred,

—damage resulting in a leak, and

—effectiveness of emergency response

plans to a leak.

6. Regulatory Perspective

Why Is OPS Considering This Project?

The OPS Project Review Team

evaluated Phillips’s proposed project

according to review protocols and

criteria. OPS has concluded the Phillips

project will:

1. Provide superior safety and

environmental protection for the

pipeline segments proposed for the

demonstration project; and

2. Offer a good opportunity to

evaluate risk management as a

component of the Federal pipeline

safety regulatory program.

Phillips is not proposing any

alternative to or requesting any

regulatory exemption from existing

pipeline safety regulations in this

demonstration project. Rather, Phillips’s

proposed project goes beyond the

regulations and is considered to provide

superior protection.

Phillips’s proposed project offers a

good opportunity to evaluate risk

management as a component of the

Federal pipeline safety regulatory

program. It also provides an opportunity

to evaluate a risk-based pipeline damage

prevention methodology that could have

broad potential application. The damage

prevention focus could also offer

benefits to the current joint government/

industry initiative on damage

prevention education.

While the overall safety record for

pipeline transportation is excellent,

third party damage still presents a

significant problem. Education on

damage prevention is essential to

reducing the incidence of third-party

damage to underground facilities. OPS

is currently sponsoring a joint

government and industry Damage

Prevention Quality Action Team to

evaluate how to best utilize education

resources to prevent pipeline damage.

Phillips’s proposed demonstration

project is consistent with OPS’s goals

concerning pipeline damage prevention.

The potential synergies between the

Phillips project and the Damage

Prevention Quality Action Team should

enhance the benefits from both efforts.

OPS believes the Demonstration

Program could benefit from Phillips’s

participation, given some of the

distinguishing features of its proposed

demonstration project, including:

—An emphasis on improving damage

prevention and emergency response

coordination;

—Plans for concentrated public

outreach and risk communications

efforts;

—A good illustration of how companies

can use excavation risk management

to improve safety without seeking to

reduce costs incurred by existing

regulations;

—Phillips’s willingness to share

information with OPS and state

pipeline safety agencies on the

specific risks associated with the

demonstration line segments and the

Company’s overall risk management

program and processes. This

additional information will allow OPS

to more effectively ensure safe

operation, and help OPS understand

how risk management might be

employed to supplement the existing

regulatory framework.

How Will OPS Oversee This Project?

The demonstration segments will be

subject to routine OPS inspection to

ensure compliance with the applicable

Federal pipeline safety regulations.

Additionally, the Demonstration Project

will be monitored by a Project Review

Team (PRT) consisting of OPS

headquarters and regional staff, and

state pipeline safety officials. The PRT

is designed to implement a more

comprehensive oversight process, which

draws maximum technical experience

and perspective from all affected OPS

regional and headquarters offices as

well as any affected state agencies that

would not normally provide oversight

on interstate transmission projects.

One of the PRT’s primary functions

will be to conduct periodic risk

management audits. These audits will

ensure Phillips’s compliance with the

specific terms and conditions of the

OPS Order authorizing Phillips’s

demonstration project, and will be

performed in addition to the normal

OPS inspections. OPS is developing a

detailed audit plan, tailored to the

unique requirements of Phillips’s

demonstration project. This plan will

describe the audit process (e.g., types of

inspections, methods, and their

frequency), as well as the specific

requirements for reporting information

and performance measure data to OPS.

Phillips is not requesting any

regulatory exemptions, and OPS retains

full authority to administer and enforce

all regulations governing pipeline

safety.

Information Provided to the Public

OPS has previously provided

information to the public about the

Phillips project, and has requested

public comment, using many different

sources. OPS aired several electronic

‘‘town meetings’’ enabling viewers of

the two-way live broadcasts to pose

questions and voice concerns about

candidate companies (including

Phillips). An earlier Federal Register

notice (62 FR 53052; October 10, 1997)

informed the public that Phillips was

interested in participating in the

Demonstration Program, provided

general information about technical

issues and risk control alternatives to be

explored, and identified the geographic

areas the demonstration project would

traverse.

Since August, OPS has used an

Internet-accessible data system called

the Pipeline Risk Management

Information System (PRIMIS) at http://

www.cycla.com/opsdemo to collect,

update, and exchange information about

all demonstration candidates, including

Phillips.

At a November 19, 1997, public

meeting OPS hosted in Houston, TX,

Phillips officials presented a summary

of the proposed demonstration project

and answered questions from meeting

attendees. (Portions of this meeting were

broadcast on December 4, 1997, and

March 26, 1998.)

OPS has provided a prospectus,

which includes a map of the

demonstration segments, to State

officials and community representatives

who may be interested in reviewing

project information, providing input, or

monitoring the progress of the project.

At this point, OPS has received no

public comment on the Phillips’s

proposal.

This notice is the last public comment

opportunity prior to approval of

Phillips’s demonstration project.

Issued in Washington, DC on June 25,

1998.

Richard B. Felder,

Associate Administrator for Pipeline Safety.

Appendix: Environmental Assessment

A. Background and Purpose

A Presidential Directive to the Secretary of

Transportation (October 16, 1996) stated that
36028 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Notices

in implementing the Pipeline Risk

Management Demonstration Program: ‘‘The

Secretary shall require each project to

achieve superior levels of public safety and

environmental protection when compared

with regulatory requirements that otherwise

would apply.’’ Thus, the process to select

operators for this Demonstration Program

involves a comprehensive review to ensure

that the proposed project will provide the

superior safety and environmental protection

required by this Directive. This document

summarizes the key points of this review for

Phillips Pipe Line Company’s (Phillips)

proposed demonstration project and

evaluates the safety and environmental

impacts of this proposed project.

This document was prepared in

accordance with section 102(2)(c) of the

National Environmental Policy Act (42 U.S.C.

Section 4332), the Council on Environmental

Quality regulations (40 CFR Sections 1500–

1508), and Department of Transportation

Order 5610.1c, Procedures for Considering

Environmental Impacts.

B. Description of Proposed Action

OPS intends to approve Phillips as a

participant in the Pipeline Risk Management

Demonstration Program. Phillips has

proposed a 60-mile segment of two pipelines

for inclusion in its demonstration project.

Phillips’s Sweeny—Pasadena products

pipeline system consists of two interstate

pipelines, 12′′ and 18′′, that deliver refined

products (e.g., gasolines, distillates, and

naphtha) from Phillips’s Sweeny Refinery in

Sweeny, Texas, to Phillips’s Pasadena

Terminal in Pasadena Texas. As the primary

focus of its risk management demonstration

project, Phillips proposes to

comprehensively evaluate the application

and effectiveness of its Excavation Risk

Assessment Process to all company and

third-party excavations that occur on and

across the pipeline segments included in the

project. OPS believes the Phillips

demonstration project will provide superior

safety and environmental protection by

applying excavation risk control measures

that exceed regulatory requirements.

In 1995, the Phillips Petroleum Company

(Phillips Corporate) created the Process for

Safety and Environmental Excellence (PSEE)

to achieve a more consistent, formalized

approach to ensuring safe and

environmentally responsible operation of its

facilities. The PSEE is designed to manage

environmental, safety and health risks in a

manner that is integral to and not separate

from the overall business process. The

Phillips Corporate PSEE is a comprehensive

business process applicable to every Phillips

Corporate business unit (e.g., Phillips Pipe

Line Company). Within this framework, each

business unit is required to implement a

formal risk management program.

As part of formalizing its risk management

program for pipelines, Phillips has identified

and uses a variety of tools to identify and

manage pipeline risks. These include:

hazards analysis, environmental impact

reviews, internal (pipeline) inspection tools,

incident investigations, safety, health and

environmental audits, contractor

assessments, design reviews and others. To

support a more integrated evaluation of the

potential risks represented by its pipelines,

the company also developed the Phillips

Pipeline Risk Assessment System (PRAS).

PRAS is a computerized indexing model that

predicts the relative risk different pipe

segments represent based on numerous

factors that influence the likelihood and

consequences of pipeline failure. The model

synthesizes data and information on pipe

design, operation, maintenance, pipe

condition, population and activity near the

line, and external environmental conditions.

PRAS has been in use since 1995 and has

been applied to all of Phillips’s regulated

pipeline systems (approximately 5500 miles

of pipe). During the course of the

demonstration project, Phillips will be

enhancing PRAS and evaluating improved

approaches to integrate the PRAS results

with the output from the other tools noted

previously to comprehensively and

consistently assess risks across its pipeline.

During this demonstration project, Phillips

will share information about its evolving risk

management program with OPS. This will

enable OPS to improve its understanding of

the methods and techniques the company is

using to manage risk on its system, and to

obtain far more information about the

company’s management processes, pipeline

operations, and potential safety and

environmental risks than is normally

observed during OPS regulatory compliance

inspections.

A key element of Phillips’s risk

management program, and the primary focus

of Phillips’s proposed demonstration project,

is a risk-based approach to managing the

risks associated with pipeline excavations.

The Phillips Excavation Risk Assessment

Process is a formal, ongoing process that has

been in use system-wide since 1993 to

identify and control the unique risks

associated with each excavation on or near

Phillips’s pipelines. The process goes beyond

the existing pipeline safety regulatory

requirements for damage prevention.

The Phillips Excavation Risk Assessment

Process includes specific procedures relative

to pipeline excavations and requires that an

excavation site inspection and risk

assessment be conducted prior to each

excavation project. A risk assessment matrix

is used to assess the potential risks associated

with each excavation project. This matrix

examines various risk factors for each

excavation, including nearby population

density, the presence of roads and railways,

the existence of other utilities in the vicinity

of the pipeline, the type of excavation

equipment being used, and the properties of

the product in the pipeline. Phillips uses a

graded approach based on combinations of

risk factors to evaluate the level of Phillips’s

project review and approvals required for the

excavation plan.

For its risk management demonstration

project, Phillips proposes to

comprehensively evaluate the application

and effectiveness of the Excavation Risk

Assessment Process to all company and

third-party excavations that occur on and

across the pipeline segments included in the

project. Phillips’s demonstration project will

involve:

—requirements that an excavation risk

assessment be conducted prior to each

excavation project (whether the excavation

is performed by Phillips’s employees or

outside parties proposing to dig near

Phillips’s lines);

—requirements that outside parties

excavating along the Phillips right-of-way

prepare work plans and obtain Phillips’s

approval prior to initiating excavation;

—increased work plan formality, level of

detail, and management approval required

for higher risk excavations, including

where appropriate, coordination with local

emergency response personnel;

—enhanced monitoring of excavation work;

—gathering of performance measurement

data and developing a more quantitative

assessment of the benefits of performing

excavation risk assessments; and,

—enhanced communications with One-Call

centers, excavators, and the public.

Phillips plans to communicate the details,

progress, and results of the demonstration

project, both externally and internally.

Internally, Phillips will implement a formal

communication program for company

personnel involved with the demonstration

project. Phillips will also implement

excavation risk assessment refresher training

prior to the start of the project, that will

include the demonstration project

communication plans and performance

measures to be monitored and tracked during

the project.

Externally, Phillips will contact the

affected local emergency planning

committees (LEPCs) to communicate the

details of the project and to identify how

Phillips will communicate progress and

results during the project. Phillips will also

contact city and county planning committees

for the towns that the demonstration

segments cross to communicate Phillips’s

excavation requirements. Phillips will

conduct surveys on the excavation risk

management process effectiveness. Phillips

plans to communicate throughout the project

with OPS, the Texas Railroad Commission,

city and county planning committees,

affected LEPCs, and contractors and

developers.

Phillips’s intended approach to

performance monitoring of the project will

include formal data collection and

performance measures related to excavations

along the demonstration segments. Phillips

has proposed an initial set of performance

metrics for the project and has an excavation

risk assessment data collection worksheet to

generate data and information relative to

these metrics. Phillips’s proposed

performance metrics include:

• total number of one-call requests

• total number of excavation projects broken

down by

—Phillips excavation projects (planned

and unplanned),

—third-party excavations planned, and

—other, unplanned excavation activities.

• initial and final risk ranking of each

excavation that required a formal risk

assessment

• level of approval obtained to complete the

excavation

• number and type of risk control activities

implemented
Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Notices 36029

• number of excavations completed,

changed, or terminated

• categorization and characterization of the

number of excavations by

—successful excavation (i.e., no damage),

—damage incurred,

—damage resulting in a leak, and

—effectiveness of emergency response

plans to a leak.

Phillips and OPS expect this project to

demonstrate that risk management

techniques can be successfully applied

toward improving pipeline excavation safety.

During this demonstration project, Phillips

will share information about its evolving risk

management program with OPS. This will

enable OPS to acquire an improved

understanding of the methods and

techniques the company is using to manage

risk on its system, and obtain far more

information about the company’s

management processes, pipeline operations,

and potential safety and environmental risks

than is normally observed during OPS

regulatory compliance inspections.

OPS intends to approve Phillips as a

participant in the Pipeline Risk Management

Demonstration Program. OPS believes the

Phillips demonstration project will provide

superior safety by applying excavation risk

control measures that exceed regulatory

requirements.

Phillips is not requesting any regulatory

exemptions, and OPS retains full authority to

administer and enforce all regulations

governing pipeline safety. The demonstration

segments will be subject to routine OPS

inspection to ensure compliance with the

applicable Federal Pipeline Safety

Regulations. Additionally, the Demonstration

Project will be monitored by a Project Review

Team (PRT) consisting of OPS headquarters

and regional staff and state pipeline safety

officials. The PRT is designed to implement

a more comprehensive oversight process,

which draws maximum technical experience

and perspective from all affected OPS

regional and headquarters offices as well as

any affected state agencies that would not

normally provide oversight on interstate

transmission projects.

One of the PRT’s primary functions will be

to conduct periodic risk management audits.

These audits will ensure Phillips’s

compliance with the specific terms and

conditions of the OPS Order authorizing

Phillips’s demonstration project, and will be

performed in addition to the normal OPS

inspections. OPS is developing a detailed

audit plan, tailored to the unique

requirements of Phillips’s demonstration

project. This plan will describe the audit

process (e.g., types of inspections, methods,

and their frequency), as well as the specific

requirements for reporting information and

performance measure data to OPS.

C. Purpose and Need for Action

As authorized by Congress, OPS is

conducting a structured Demonstration

Program to evaluate the use of a

comprehensive risk management approach in

the operations and regulation of interstate

pipeline facilities. This evaluation is being

performed under strictly controlled

conditions through a set of demonstration

projects being conducted with interstate

pipeline operators. Through the

Demonstration Program, OPS will determine

whether a risk management approach,

properly implemented and monitored

through a formal risk management regulatory

framework, achieves:

(1) Superior safety and environmental

protection; and

(2) Increased efficiency and service

reliability of pipeline operations.

On July 21, 1997, Phillips Pipe Line

Company submitted a Letter of Intent to OPS,

asking to be considered as a Demonstration

Program candidate. Using the consultative

process described in Appendix A of the

Requests for Application for the Pipeline

Risk Management Demonstration Program

(62 FR 14719), published on March 27, 1997,

OPS is satisfied that Phillips’s proposal will

provide superior safety and environmental

protection, and is prepared to finalize the

agreement with Phillips on the provisions for

the demonstration project.

D. Alternatives Considered

OPS has considered three alternatives:

approval of the Phillips risk management

demonstration project as proposed in

Phillips’s application; denial of the Phillips

demonstration project; or approval of the

project with certain modifications to

Phillips’s application.

OPS’s preferred alternative is to approve

the Phillips demonstration project as

proposed in Phillips’s application. OPS is

satisfied that the proposal provides superior

protection for the demonstration project

segments and the surrounding environment.

The Phillips Excavation Risk Assessment

Process provides a higher level of protection

than exists under the current regulatory

requirements. Phillips is not requesting any

regulatory exemptions and OPS retains full

authority to administer and enforce all

regulations governing pipeline safety. The

demonstration segments will be subject to

routine OPS inspection to ensure compliance

with the applicable Federal Pipeline Safety

Regulations. OPS and Phillips will monitor

and, if necessary, improve the effectiveness

of the risk control activities throughout the

demonstration period.

Denial of the project would result in OPS’s

considerable loss of valuable information

concerning the effectiveness of the proposed

methodology for assessing and controlling

excavation risks and reducing third-party

damage. Denial would also significantly

diminish OPS’s ability to evaluate the

effectiveness of an institutionalized,

integrated, and comprehensive risk

management program in producing superior

performance, and would hinder OPS’s ability

to satisfy the objectives of the Risk

Management Demonstration Program, and

the requirements of the aforementioned

Presidential Directive.

All of the issues raised by OPS, state

pipeline safety officials, stakeholders, and

the public about Phillips’s proposed project

have been discussed within the consultative

process, resolved to OPS’s satisfaction, and

reflected in Phillips’s application. Therefore,

OPS does not believe that modifications to

Phillips’s application are required.

E. Affected Environment and Environmental

Consequences

The 12′′ and 18′′ Sweeny—Pasadena

pipelines proposed for this demonstration

project transport refined products (e.g.,

gasolines, distillates, and naphtha) from

Phillips’s Sweeny Refinery to Phillips’s

Pasadena Terminal in Pasadena, Texas.

These products are stable, flammable liquids.

Product spills could result in the

accumulation of highly flammable, heavier

than air vapors in low areas. These vapors

could also spread along the ground away

from the spill site and could ignite. The

resulting fire could create localized damage

in the vicinity of the release. These products

form carbon oxides and various

hydrocarbons which are dispersed into the

atmosphere when burned. These products

will float on water (their solubility in water

is negligible), and large spills have been

known to result in kills of fish and other

aquatic life.

However, it should be noted that the

transport of these products is already

protected by all existing, applicable pipeline

safety regulations and safe industry practices,

which have contributed to a good pipeline

industry safety record. The proposed risk

management measures are intended to

improve upon this safety record.

The Sweeny-Pasadena system pipelines

have been in operation since 1959 and 1979,

respectively. This system runs roughly

Northeast from the Sweeny Refinery to the

Pasadena Terminal, passing near the

northern edge of Friendswood, Texas. The

lines parallel each other over the entire 60-

mile distance to be included in the

demonstration project. The lines run through

sparsely populated areas for about the first 45

miles and through heavily populated areas

for the last 15 miles. The lines cross the

Brazos and San Bernard rivers, several major

roadways and railroad lines, and pass

underneath the Texas State Department of

Corrections’ Ramsey facility.

Both of these lines have a good leak

history. The 12′′ line began service in 1956

and has a maximum operating pressure

(MOP) of 1270 psi. It has had two leaks: one

in 1992 and another in 1993. These leaks

resulted in localized surface contamination

near the line. Phillips quickly detected the

leaks and stopped the release of product. The

contaminated areas were satisfactorily

remediated. There were no fatalities, injuries

or adverse health effects to any member of

the public or to any Phillips employee from

these events. Both of these leaks were

associated with material defects that

developed because of the manufacturing

process used to bend sections of the pipe. As

a result of these events, Phillips conducted

a comprehensive review of all pipe bends,

that included an internal inspection for

geometric defects. All piping bends with

characteristics similar to those that had failed

were replaced or heat treated to eliminate the

condition that created the leaks. The 12′′ line

also has some history of coating problems. To

resolve this problem, Phillips has placed

additional rectifiers to provide enhanced

cathodic protection.

The 18′′ line was placed in service in 1979

and has a MOP of 680 psi. The 18′′ line has

not had any leaks.
36030 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Notices

The OPS Project Review Team carefully

reviewed Phillips’s proposed excavation risk

management activities and concluded that

superior protection would be provided for

the pipeline systems during the

demonstration project. The Phillips

Excavation Risk Assessment Process goes

beyond the existing regulations in providing

additional assurance of safety. OPS has

concluded that the enhanced risk control

activities will reduce the likelihood of

pipeline accidents and leaks, especially those

resulting from third party damage. Should a

leak or rupture occur, the enhanced

communication efforts should improve the

responsiveness of company and local

officials to an event, and diminish the

consequences of any such leak or rupture. In

summary, based on expected reductions in

both the likelihood and consequences of

leaks and ruptures, OPS has concluded that

the proposed risk control activities will

clearly reduce safety and environmental

risks.

F. Environmental Justice Considerations

In accordance with Executive Order 12898

(Federal Actions to Address Environmental

Justice in Minority and Low-Income

Populations), OPS has considered the effects

of the demonstration project on minority and

low-income populations. As explained

above, OPS believes this project will provide

superior safety and environmental protection

along the demonstration project lines. The

pipeline segments proposed for the project

are routed mostly through rural, sparsely

populated areas, but include about 15 miles

of pipeline which runs through industrial

and developing residential areas. A mixture

of income levels resides along the segments.

The risk control activities provide greater

protection than mere compliance with

existing regulations. Because the proposed

risk management activities will be applied

uniformly along the lines, residents and

communities near the lines will be afforded

greater protection, regardless of the residents’

income level or minority status. Therefore,

the proposed project does not have any

disproportionately high or adverse health or

environmental effects on any minority or

low-income populations along the

demonstration segments.

G. Information Made Available to States,

Local Governments, (and) Individuals

OPS has recently (in January and February

1998) made the following documents

publicly available, and incorporates them by

reference into this environmental assessment:

(1) ‘‘Demonstration Project Prospectus:

Phillips Pipe Line Company’’, June, 1998,

available by contacting Elizabeth M. Callsen

at 202–366–4572. Includes maps of the

demonstration segments. Purpose is to reach

the public, local officials, and other

stakeholders, and to solicit their input about

the proposed project. Mailed to over 500

individuals, including Local Emergency

Planning Committees (LEPC) and other local

safety officials, Regional Response Teams

(RRT) representing other federal agencies,

state pipeline safety officials, conference

attendees, and members of public interest

groups.

(2) ‘‘Phillips Pipe Line Company—

Application for DOT-OPS Risk Management

Demonstration Program’’, available in Docket

No. RSPA–98–3982 at the Dockets Facility,

U.S. Department of Transportation, Plaza

401, 400 Seventh Street, SW, Washington, DC

20590–0001, (202)366–5046.

(3) ‘‘OPS Project Review Team Evaluation

of Phillips Demonstration Project’’.

(4) Notice of Intent to approve project

(published concurrently with this

environmental assessment).

OPS has previously provided information

to the public about the Phillips project, and

has requested public comment, using many

different sources. OPS aired several

electronic broadcasts reporting on

demonstration project proposals, including

Phillips’s proposal. An earlier Federal

Register notice (62 FR 53052; October 10,

1997) informed the public that Phillips was

interested in participating in the

Demonstration Program, provided general

information about technical issues and risk

control alternatives to be explored, and

identified the geographic areas the

demonstration project would traverse.

Since August 1997, OPS has used an

Internet-accessible data system called the

Pipeline Risk Management Information

System (PRIMIS) at http://www.cycla.com/

opsdemo to collect, update, and exchange

information about all demonstration project

candidates, including Phillips.

At a November 19, 1997, public meeting

OPS hosted in Houston, TX, Phillips officials

presented a summary of the proposed

demonstration project and answered

questions from meeting attendees. (Portions

of this meeting were broadcast on December

4, 1997, and on March 26, 1998. This

broadcast is available on demand via the OPS

website at http://ops.dot.gov/tmvid.htm.) No

issues or concerns about Phillips’s proposal

have been raised.

H. Listing of the Agencies and Persons

Consulted, Including Any Consultants

Persons/Agencies Directly Involved in Project

Evaluation

Stacey Gerard, OPS/U.S. Department of

Transportation

James C. Thomas (retired), OPS/U.S.

Department of Transportation

Linda Daugherty, OPS/U.S. Department of

Transportation

Carl Griffis, OPS/U.S. Department of

Transportation

Anne Marie Joseph, OPS/U.S. Department of

Transportation

Rod Seeley, OPS/U.S. Department of

Transportation

Bruce Hansen, OPS/U.S. Department of

Transportation

Elizabeth Callsen, OPS/U.S. Department of

Transportation

Mary McDaniel, Gas Services Division,

Railroad Commission of Texas

Jim vonHerrmann, Cycla Corporation

(consultant)

Robert Brown, Cycla Corporation (consultant)

Herb Wilhite, Cycla Corporation (consultant)

Persons/Agencies Receiving Briefings/Project

Prospectus/Requests for Comment

Regional Response Team (RRT), Region 6,

representing the Environmental Protection

Agency; the Coast Guard; the U.S.

Departments of Interior, Commerce, Justice,

Transportation, Agriculture, Defense, State,

Energy, Labor; Health and Human Services;

the Nuclear Regulatory Commission; the

General Services Administration; and the

Federal Emergency Management Agency

(RRT Co-Chairs: Charles Gazda, EPA Region

6 and Cdr. Ed Stanton, Coast Guard 8th

District).

I. Conclusion

Based on the above-described analysis of

the proposed demonstration project, OPS has

determined that there are no significant

impacts associated with this action.

[FR Doc. 98–17493 Filed 6–30–98; 8:45 am]

BILLING CODE 4910–60–P

DEPARTMENT OF TRANSPORTATION

Research and Special Programs

Administration

[Docket No. RSPA–97–2426; Notice 2]

Pipeline Safety: National Pipeline

Mapping System

AGENCY: Research and Special Programs

Administration (RSPA), DOT.

ACTION: Public workshops.

SUMMARY: RSPA invites natural gas

transmission and hazardous liquid

pipeline operators, liquefied natural gas

facility operations managers, mapping

specialists, federal and state government

agencies, and the public, to attend one

of four public workshops on the

national pipeline mapping system

(NPMS). This digital mapping system,

when complete, will show the location

and selected attributes of the major

natural gas transmission and hazardous

liquid pipelines and liquefied natural

gas facilities in the United States. At

each of the workshops we will provide:

An overview of the NPMS; details on

the types of information OPS is

requesting for the NPMS; facts about

how we will use this information;

technical specifications for submitting

attribute data, geospatial data, and

metadata; information about the

national and state repository system;

and advice on how to convert paper

maps to digital data, should you want to

convert.

DATES AND LOCATIONS: Four workshops

will be held:

• July 14–15—Adam’s Mark Hotels

and Resorts, Houston, TX, 2900

Briarpark Drive at Westheimer,

(800) 436–2326;

• September 1–2—Hotel Arlington

Heights, Arlington Heights, IL, 75

W. Algonquin Road, (847) 364–

7600;